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Botox treatment developed in CU lab nets $30 million payout

Treatment helps with urinary incontinence for people with neurological conditions

By Brittany Anas Camera Staff Writer

Posted:
03/24/2012 03:37:34 PM MDT

Updated:
03/26/2012 11:35:16 AM MDT

Correction: The original version of this story incorrectly stated how the revenue from this invention was divided among the university and the inventor. Twenty-five percent of the revenue was distributed to the inventor, who is no longer at the university, 35 percent went to the university's tech transfer office and 40 percent went to the Anschutz Medical Campus, where the inventor worked.

The University of Colorado has received a $30 million payout for a Botox treatment that one of its faculty members invented in the late 1990s.

The treatment, which was approved by the U.S. Food and Drug Administration in August, was developed to treat urinary incontinence in people with neurological conditions, such as spinal cord injury and multiple sclerosis, who have overactive bladders.

"Upon that approval, we went to a number of investment organizations that purchase royalty streams and we conducted, in essence, an auction," explained David Allen, the director of CUs Technology Transfer Office.

Twenty-five percent of the revenue was distributed to the inventor, who is no longer at the university, 35 percent went to the university's tech transfer office and 40 percent went to the Anschutz Medical Campus, where the invetor worked.

The Camera learned of the payout through an open records request that included an email written by CU President Bruce Benson updating the regents on the matter. Benson, in the email from January, said that there is a possibility to earn $10 million more in the future from the monetization of the treatment.

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"This has spurred our thinking into how we can do a better job maximizing our licensing of intellectual property," Benson wrote in the email. "We have determined to form a science advisory committee to guide our efforts in the area."

The treatment consists of Botox being injected into the bladder resulting in relaxation of the bladder, an increase in its storage capacity and a decrease in urinary incontinence.

California-based Allergan Inc. licensed the technology, which was invented by former CU professor Richard Schmidt and patented by CU.

The effectiveness of Botox to treat incontinence related to neurological conditions was demonstrated in two clinical studies involving 691 patients. Both studies showed statistically significant decreases in the weekly frequency of incontinence episodes in the Botox group compared with the group given a placebo.

Botox is a drug made from a toxin produced by the bacterium Clostridium botulinum, which is the same toxin that causes a life-threatening type of food poisoning called botulism. Doctors use it in small doses to treat health problems, including severe underarm sweating, a neurological disorder that causes severe neck and shoulder muscle contractions, and uncontrolled blinking. It is also used cosmetically to temporarily remove facial wrinkles.

CU's Technology Transfer Office's annual budget is about $5 million, of which $1 million is covered by grants, service payments and patent reimbursements from licensees. The remaining $4 million comes from royalties.

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